The Coase Theorem States That

question 183

Multiple Choice

The Coase theorem states that

• A)government intervention is always needed if externalities are present.
• B)assigning property rights is the only thing the government should do in a market economy.
• C)if transactions costs are low, private bargaining will result in an efficient solution to the problem of externalities.
• D)a free-market equilibrium is the best solution to address externalities.

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Definitions:

Cognitive-Behavioral

Referring to a psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic procedure.

Short-Term

pertaining to or lasting for only a limited period of time; often contrasted with long-term.

Cognitive-Behavior Therapy

A therapeutic approach that aims to change negative patterns of thinking or behavior that contribute to an individual's struggles.

Maladaptive Behaviors

Actions or tendencies that are counterproductive to one's own welfare and may impede adjustment, personal growth, or functioning.